Alpha Pro Tech, Ltd. (NYSE American: APT), a
leading manufacturer of products designed to protect people,
products and environments, including disposable protective apparel
and building products, today announced financial
results
for the three and nine month periods
ended September 30, 2024.
Lloyd Hoffman, President and Chief Executive
Officer of Alpha Pro Tech, commented, “The U.S. housing market
continues to face challenges, with housing starts down 4.0% in the
third quarter of 2024 compared to the prior year period. During the
first six months of 2024, housing starts trailed 2023 by 2.7% while
our core building product sales remained nearly flat. In July 2024,
housing starts were down 14.3%, leading to our largest customers
reducing shipments and adjusting their inventory positions,
resulting in decreased sales in the third quarter of 2024. Despite
the drop in housing starts in 2024, the percentage decline of sales
to those large customers was lower than the percentage decline of
housing starts. Presenting an additional challenge in 2024,
multi-family housing starts for the first nine months were down
30.5% compared to 2023 and the lowest in ten years. Building Supply
segment sales in the third quarter were also being compared to
record quarterly sales in the third quarter of 2023.
Management is encouraged for the remainder of
2024, as our robust inventory and plant location in Georgia will
allow us to assist in the southeast rebuild after hurricanes Helene
and Milton. Since the first storm, we have seen a surge in
synthetic roof underlayment orders, which we expect to have a
positive effect on the fourth quarter of 2024. We are exploring
additional products such as roof and deck flashing. As building
codes evolve, we see this as an opportunity to capture additional
business, specifically in coastal and high wind markets. We expect
growth in the Building Supply segment when uncertainty in the
housing market abates and flat to positive new home starts
statistics become apparent.”
“Sales of disposable protective garments in the
third quarter of 2024 were up by 6.9%, primarily due to increased
sales to our regional and national distributors. We expect
continued growth for disposable protective garments in the
remainder of 2024. Face mask and face shield sales in the third
quarter of 2024, which were up 124.3% and 204.5%, respectively, are
showing signs of improvement. The market continues to be saturated
with face mask and face shield products from the post COVID-19
residual excess inventories at the distributor level, but
management is cautiously optimistic that sales of these products
will continue to show growth in 2024 and beyond,” added
Hoffman.
Net SalesThree months ended September
30, 2024, compared to three months ended September 30,
2023
Consolidated sales for the three months ended
September 30, 2024, decreased to $14.3 million, from $16.1 million
for the three months ended September 30, 2023, representing a
decrease of $1.8 million, or 11.2%. This decrease consisted of
decreased sales in the Building Supply segment of $2.7 million,
partially offset by increased sales in the Disposable Protective
Apparel segment of $849,000.
Building Supply Segment
Building Supply segment sales for the quarter
ended September 30, 2024 decreased by $2.7 million or 23.2%, to
$8.8 million, compared to $11.4 million for the three months ended
September 30, 2023. The Building Supply segment decrease during the
three months ended September 30, 2024, was primarily due a 16.2%
decrease in sales of housewrap, a 25.1% decrease in sales of
synthetic roof underlayment, and a 27.2% decrease in sales of other
woven material, each compared to the same period of 2023.
The sales mix of the Building Supply segment for
the three months ended September 30, 2024, was approximately 46%
for housewrap, 41% for synthetic roof underlayment and 13% for
other woven material. This compared to approximately 43% for
housewrap, 43% for synthetic roof underlayment and 14% for other
woven material for the three months ended September 30, 2023.
Other woven material sales decreased by 27.2% in
the third quarter of 2024 compared to the same period of 2023, due
to decreased sales to a customer that was acquired by another
company. The Company is pursuing new opportunities for other woven
material sales that may improve sales, but management does not
expect other woven material sales to be a growth driver in the
short term.
Disposable Protective Apparel
Segment
Disposable Protective Apparel segment sales for
the three months ended September 30, 2024 increased by $849,000, or
18.4%, to $5.5 million, compared to $4.6 million for the same
period of 2023. This segment increase was due to a 6.9% increase in
sales of disposable protective garments, a 124.3% increase in sales
of face masks and a 204.5% increase in sales of face shields.
The sales mix of the Disposable Protective
Apparel segment for the three months ended September 30, 2024, was
approximately 82% for disposable protective garments, 13% for face
masks and 5% for face shields. This sales mix is compared to
approximately 91% for disposable protective garments, 7% for face
masks and 2% for face shields for the three months ended September
30, 2023.
Nine months ended September 30, 2024,
compared to nine months ended September 30, 2023
Consolidated sales for the nine months ended
September 30, 2024 decreased to $44.0 million from $46.0 million
for the nine months ended September 30, 2023, representing a
decrease of $1.9 million or 4.2%. This decrease consisted of
decreased sales in the Building Supply segment of $3.6 million,
partially offset by increased sales in the Disposable Protective
Apparel segment of $1.7 million.
Building Supply Segment
Building Supply segment sales for the nine
months ended September 30, 2024 decreased by $3.6 million or 11.9%,
to $27.0 million, compared to $30.6 million for the same period of
2023. Sales of housewrap decreased by 2.6%, sales of synthetic roof
underlayment decreased by 13.2% and sales of other woven material
decreased by 29.9% compared to the same period of 2023.
The sales mix of the Building Supply segment for
the nine months ended September 30, 2024 was 50% for housewrap, 40%
for synthetic roof underlayment and 10% for other woven material.
This compared to 46% for housewrap, 42% for synthetic roof
underlayment and 12% for other woven material for the nine months
ended September 30, 2023.
Disposable Protective Apparel
Segment
Sales for the Disposable Protective Apparel
segment for the nine months ended September 30, 2024 increased by
$1.7 million, or 11.0%, to $17.0 million, compared to $15.4 million
for the same period of 2023. This segment increase was due to a
5.7% increase in sales of disposable protective garments, a 55.3%
increase in sales of face masks, and a 63.6% increase in sales of
face shields.
The sales mix of the Disposable Protective
Apparel segment for the nine months ended September 30, 2024 was
86% for disposable protective garments, 10% for face masks and 4%
for face shields. This sales mix is compared to 90% for disposable
protective garments, 7% for face masks and 3% for face shields for
the nine months ended September 30, 2023.
Sales of disposable protective garments for the
nine months ended September 30, 2024 increased by 5.7%, for the
reasons discussed above in the three months ended September 30,
2024 section. Face mask and face shield sales, although up 55.3%
and 63.6% compared to 2023, continue to be affected by excess
inventories at the distributor level and in the marketplace.
Gross Profit
Gross profit decreased by $551,000, or 9.1%, to
$5.5 million for the three months ended September 30, 2024, from
$6.0 million for the three months ended September 30, 2023. The
gross profit margin was 38.5% for the three months ended September
30, 2024, compared to 37.6% for the three months ended September
30, 2023.
Gross profit increased by $620,000, or 3.6%, to
$17.7 million for the nine months ended September 30, 2024, from
$17.1 million for the nine months ended September 30, 2023. The
gross profit margin was 40.3% for the nine months ended September
30, 2024, compared to 37.3% for the nine months ended September 30,
2023.
The gross profit margin in 2024 was positively
affected by a margin increase in both the Disposable Protective
Apparel and Building Supply segments. However, management expects
the gross profit margin could be negatively affected by recent
significant increases in ocean freight rates.
Selling, General and Administrative
Expenses
Selling, general and administrative expenses
increased by $115,000, or 2.6%, to $4.5 million for the three
months ended September 30, 2024, from $4.4 million for the three
months ended September 30, 2023. As a percentage of net sales,
selling, general and administrative expenses increased to 31.6% for
the three months ended September 30, 2024, from 27.3% for 2023.
Selling, general and administrative expenses
increased by $959,000, or 7.2%, to $14.2 million for the nine
months ended September 30, 2024, from $13.3 million for the nine
months ended September 30, 2023. As a percentage of net sales,
selling, general and administrative expenses increased to 32.3% for
the nine months ended September 30, 2024, from 28.9% for the same
period of 2023.
Income from Operations
Income from operations decreased by $686,000, or
48.2%, to $737,000 for the three months ended September 30, 2024,
compared to $1.4 million for the three months ended September 30,
2023. The decreased income from operations was primarily due to a
decrease in gross profit of $551,000 and an increase in selling,
general and administrative expenses of $115,000 and an increase in
depreciation and amortization expenses of $20,000. Income from
operations as a percentage of net sales for the three months ended
September 30, 2024, was 5.2%, compared to 8.9% for the same period
of 2023.
Income from operations decreased by $386,000, or
12.2%, to $2.8 million for the nine months ended September 30,
2024, compared to $3.2 million for the nine months ended September
30, 2023. The decreased income from operations was primarily due to
an in increase in selling, general and administrative expenses of
$959,000 and an increase in depreciation and amortization expenses
of $47,000, partially offset by an increase in gross profit of
$620,000. Income from operations as a percentage of net sales for
the nine months ended September 30, 2024, was 6.3%, compared to
6.9% for the same period of 2023.
Other Income
Other income decreased by $40,000 to income of
$362,000 for the three months ended September 30, 2024, compared to
$402,000 for the same period of 2023. The decrease was primarily
due to a decrease in equity in income of unconsolidated affiliate
of $83,000, partially offset by an increase in interest income of
$13,000 and a gain on sale of assets of $30,000.
Other income increased by $224,000 to income of
$1.2 million for the nine months ended September 30, 2024, compared
to $941,000 for the same period of 2023. The increase was primarily
due to an increase in equity in income of unconsolidated affiliate
of $43,000, an increase in interest income of $151,000 and a gain
on sale of assets of $30,000.
Net Income
Net income for the three months ended September
30, 2024, was $862,000 compared to net income of $1.4 million for
the same period of 2023, representing a decrease of $568,000, or
39.7%. The net income decrease between 2024 and 2023 was due to a
decrease in income before provision for income taxes of $726,000,
partially offset by a decrease in provision for income taxes of
$158,000. Net income as a percentage of net sales for the three
months ended September 30, 2024, was 6.0%, and net income as a
percentage of net sales for the same period of 2023 was 8.9%. Basic
and diluted earnings per common share for each of the three months
ended September 30, 2024 and 2023, was $0.08 and $0.12,
respectively.
Net income for the nine months ended September
30, 2024, was $3.082 million, compared to net income of $3.128
million for the same period of 2023, representing a decrease of
$46,000, or 1.5%. The net income decrease between 2024 and 2023 was
due to a decrease in income before provision for income taxes of
$162,000, partially offset by a decrease in provision for income
taxes of $116,000. Net income as a percentage of net sales for the
nine months ended September 30, 2024, was 7.0%, and net income as a
percentage of net sales for the same period of 2023 was 6.8%. Basic
and diluted earnings per common share for each of the nine months
ended September 30, 2024 and 2023, was $0.28 and $0.26,
respectively.
Balance Sheet
As of September 30, 2024, the Company had cash
and cash equivalents of $18.4 million compared to $20.4 million as
of December 31, 2023. The decrease in cash from December 31, 2023
was due to cash used in investing activities of $2.3 million and
cash used in financing activities of $2.9 million, partially offset
by cash provided by operating activities of $3.3 million. Working
capital totaled $48.7 million and the Company’s current ratio was
19:1 as of September 30, 2024, compared to a current ratio of 21:1
as of December 31, 2023.
Inventory increased by $946,000, or 4.7%, to
$21.1 million as of September 30, 2024, from $20.1 million as of
December 31, 2023. The increase was due to an increase in inventory
for the Building Supply segment of $2.3 million, or 33.6%, to $9.3
million, partially offset by a decrease in inventory for the
Disposable Protective Apparel segment of $1.4 million, or 10.6%, to
$11.8 million.
Colleen McDonald, Chief Financial Officer,
commented, “During the three months ended September 30, 2024, we
repurchased 180,000 shares of common stock at a cost of $1.0
million. As of September 30, 2024, we had repurchased a total of
21.1 million shares of common stock at a cost of approximately
$54.1 million through our repurchase program. We retire all stock
upon repurchase. Future repurchases are expected to be funded from
cash on hand and cash flows from operating activities. As of
September 30, 2024, we had $1.5 million available for additional
stock purchases under our stock repurchase program.”
The Company currently has no outstanding debt and believes that
the current cash balance will be sufficient to satisfy projected
working capital needs and planned capital expenditures for the
foreseeable future.
About Alpha Pro Tech, Ltd.Alpha Pro Tech, Ltd.
is the parent company of Alpha Pro Tech, Inc. and Alpha ProTech
Engineered Products, Inc. Alpha Pro Tech, Inc. develops,
manufactures and markets innovative disposable and limited-use
protective apparel products for the industrial, clean room, medical
and dental markets. Alpha ProTech Engineered Products, Inc.
manufactures and markets a line of construction weatherization
products, including building wrap and roof underlayment. The
Company has manufacturing facilities in Nogales, Arizona; Valdosta,
Georgia; and a joint venture in India. For more information and
copies of all news releases and financials, visit Alpha Pro Tech’s
website at http://www.alphaprotech.com.
Certain statements made in this press release
constitute “forward-looking statements” within the meaning of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include any statement that
may predict, forecast, indicate or imply future results,
performance or achievements instead of historical facts and may be
identified generally by the use of forward-looking terminology and
words such as “expects,” “anticipates,” “estimates,” “believes,”
“predicts,” “intends,” “plans,” “potentially,” “may,” “continue,”
“should,” “will” and words of similar meaning. Without limiting the
generality of the preceding statement, all statements in this press
release relating to estimated and projected
earnings, expectations regarding order volume, timing of
fulfillment of orders, production capacity and our plans to
ramp up production and expand capacity, product
demand, availability of raw materials and supply chain access,
margins, costs, expenditures, cash flows, sources of capital,
growth rates and future financial and operating results are
forward-looking statements. We caution investors that any such
forward-looking statements are only estimates based on current
information and involve risks and uncertainties that may cause
actual results to differ materially from the results contained in
the forward-looking statements. We cannot give assurances that any
such statements will prove to be correct. Factors that could cause
actual results to differ materially from those estimated by us
include the risks, uncertainties and assumptions described from
time to time in our public releases and reports filed with the
Securities and Exchange Commission, including, but not limited to,
our most recent Annual Report on Form 10-K and Quarterly Report on
Form 10-Q. Specifically, these factors include, but are not
limited to, our exposure to foreign currency exchange risks related
to our unconsolidated affiliate operations in India; potential
failure to remediate the material weakness in our internal
controls; our partnership with a joint venture partner; the loss of
any major customer or a reduction in order volume by our customers;
the inability of our suppliers and contractors to meet our
requirements; potential challenges related to international
manufacturing; the inability to protect our intellectual property;
competition in our industry; customer preferences; the timing and
market acceptance of new product offerings; changes in global
economic conditions; security breaches or disruptions to the
information technology infrastructure; risks related to climate
change and natural disasters or other events beyond our control;
the impact of legal and regulatory proceedings or compliance
challenges; and volatility in our common stock price and our
investments. We also caution investors that the
forward-looking information described herein represents our outlook
only as of this date, and we undertake no obligation to update or
revise any forward-looking statements to reflect events or
developments after the date of this press release. Given these
uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual results.
-- Tables follow --
|
Condensed Consolidated Balance Sheets
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
September 30, |
December 31, |
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
2023 (1) |
|
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
18,394,000 |
|
|
$ |
20,378,000 |
|
|
|
Accounts receivable, net |
|
5,626,000 |
|
|
|
5,503,000 |
|
|
|
Accounts receivable, related party |
|
645,000 |
|
|
|
1,042,000 |
|
|
|
Inventories, net |
|
21,077,000 |
|
|
|
20,131,000 |
|
|
|
Prepaid expenses |
|
5,668,000 |
|
|
|
6,010,000 |
|
|
|
|
|
Total current assets |
|
51,410,000 |
|
|
|
53,064,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
7,216,000 |
|
|
|
5,587,000 |
|
|
Goodwill |
|
|
55,000 |
|
|
|
55,000 |
|
|
Right-of-use assets |
|
8,939,000 |
|
|
|
4,810,000 |
|
|
Equity investment in unconsolidated affiliate |
|
5,705,000 |
|
|
|
5,247,000 |
|
|
|
|
|
Total assets |
$ |
73,325,000 |
|
|
$ |
68,763,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
934,000 |
|
|
$ |
802,000 |
|
|
|
Accrued liabilities |
|
901,000 |
|
|
|
1,103,000 |
|
|
|
Lease liabilities |
|
871,000 |
|
|
|
661,000 |
|
|
|
|
|
Total current liabilities |
|
2,706,000 |
|
|
|
2,566,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease liabilities, net of current portion |
|
8,113,000 |
|
|
|
4,187,000 |
|
|
Deferred income tax liabilities, net |
|
442,000 |
|
|
|
442,000 |
|
|
|
|
|
Total liabilities |
|
11,261,000 |
|
|
|
7,195,000 |
|
|
Commitments and contingencies |
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
Common stock, $.01 par value: 50,000,000 shares authorized; |
|
|
|
|
|
|
10,952,878 and 11,416,212 shares outstanding as of |
|
|
|
|
|
|
September 30, 2024 and December 31, 2023, respectively |
|
110,000 |
|
|
|
114,000 |
|
|
|
Additional paid-in capital |
|
16,442,000 |
|
|
|
16,339,000 |
|
|
|
Retained earnings |
|
46,926,000 |
|
|
|
46,552,000 |
|
|
|
Accumulated other comprehensive loss |
|
(1,414,000 |
) |
|
|
(1,437,000 |
) |
|
|
|
|
Total shareholders' equity |
|
62,064,000 |
|
|
|
61,568,000 |
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
73,325,000 |
|
|
$ |
68,763,000 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) The condensed consolidated balance sheet as of December 31,
2023, has been prepared using information from the audited
consolidated balance sheet as of that date.
|
Condensed Consolidated Statements of Comprehensive Income
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
|
|
|
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
14,251,000 |
|
$ |
16,053,000 |
|
$ |
44,023,000 |
|
$ |
45,967,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold, excluding depreciation |
|
|
|
|
|
|
|
|
|
|
and amortization |
|
|
8,767,000 |
|
|
10,018,000 |
|
|
26,280,000 |
|
|
28,844,000 |
|
|
|
|
|
|
Gross profit |
|
|
5,484,000 |
|
|
6,035,000 |
|
|
17,743,000 |
|
|
17,123,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
4,502,000 |
|
|
4,387,000 |
|
|
14,234,000 |
|
|
13,275,000 |
|
|
Depreciation and amortization |
|
|
245,000 |
|
|
225,000 |
|
|
734,000 |
|
|
687,000 |
|
|
|
|
|
|
Total operating expenses |
|
|
4,747,000 |
|
|
4,612,000 |
|
|
14,968,000 |
- |
|
13,962,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Income from operations |
|
|
737,000 |
|
|
1,423,000 |
|
|
2,775,000 |
|
|
3,161,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income: |
|
|
|
|
|
|
|
|
|
|
Equity in income of unconsolidated affiliate |
|
|
97,000 |
|
|
180,000 |
|
|
435,000 |
|
|
392,000 |
|
|
Gain on sale of asset |
|
|
30,000 |
|
|
- |
|
|
30,000 |
|
|
- |
|
|
Interest income, net |
|
|
235,000 |
|
|
222,000 |
|
|
700,000 |
|
|
549,000 |
|
|
|
|
|
|
Total other income |
|
|
362,000 |
|
|
402,000 |
|
|
1,165,000 |
|
|
941,000 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision for income taxes |
|
|
1,099,000 |
|
|
1,825,000 |
|
|
3,940,000 |
|
|
4,102,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
237,000 |
|
|
395,000 |
|
|
858,000 |
|
|
974,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
862,000 |
|
$ |
1,430,000 |
|
$ |
3,082,000 |
|
$ |
3,128,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.08 |
|
$ |
0.12 |
|
$ |
0.28 |
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
|
$ |
0.08 |
|
$ |
0.12 |
|
$ |
0.28 |
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares outstanding |
|
11,075,527 |
|
|
11,781,071 |
|
|
11,103,467 |
|
|
11,974,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding |
|
|
11,173,739 |
|
|
11,781,071 |
|
|
11,194,178 |
|
|
11,974,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
XXX
| Company Contact: |
Investor Relations Contact: |
| Alpha Pro Tech,
Ltd. |
HIR Holdings |
| Donna Millar |
Cameron Donahue |
| 905-479-0654 |
651-707-3532 |
|
e-mail: ir@alphaprotech.com |
e-mail: cameron@hirholdings.com |
Alpha Pro Tech (AMEX:APT)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
Alpha Pro Tech (AMEX:APT)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
